Friday, June 24, 2011

Penny Auctions for Beginners

Penny Auctions for Beginners: What you Need to Know.

Penny Auctions are a relatively new phenomenon and have exploded after the recent recession in the West. Their idea is simple: give people a chance to win products at a hugely discounted rate.

Notice how I say give users a 'chance' to win products. That's right, penny auctions give you a chance to win but do not guarantee a win.

Penny auctions are quite different from traditional auctions in that they charge you for every bid that you place. This is why you might see a Macbook sell for $30 in a penny auction. The auctioneer makes money both through the final selling price and more importantly through the bids sold.

Here is how penny auctions work -

1. You select a penny auction and register for free.
2. You then buy bids before hand. As I said, penny auctions are a pay per bid model which means you will pay a predetermined amount for every bid that you place.
3. You select an auction and place the bids.

One very important aspect of penny auctions for beginners which is often confusing is that the clock will reset every time a bid is placed. This means if you see 2 seconds left on the clock, the auction could potentially go on for another hour too! This is because people might keep bidding in this time frame.

If you are new to penny auctions, you should read my post on How do Penny Auctions Work.

Also, if you are looking to join a penny auction, you have to consider how competitive it is. Sites like Quibids are really big and have loads of products but it can be really competitive. Sites like HappyBidDay have a lower product selection but on an average will give much superior savings.

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